Dick’s Sporting Goods Beats Estimates, Could Grab Market Share

By Grace L. Williams

Dick’s Sporting Goods (DKS) shares rose 4.6% on Tuesday after the company reported a solid fiscal third quarter and lifted its full year estimates, helped by new stores and marketing initiatives.

For the period ended Oct. 27, the country’s largest full-line sporting goods chain reported profit of $50.1 million or 40 cents a share, up from $41.5 million, or 32 cents a share last year.

Sales at the retailer rose to $1.31 billion, compared to $1.18 billion a year ago.

Analysts polled by FactSet forecast 37 cents a share on sales coming in at just below $1.3 billion.

Additionally, Dick’s raised its full-year EPS estimates to between $2.53 and $2.55 a share on a 5% same-store sales increase, compared to a forecast in August of between $2.47 and $2.51.

Dick’s also announced that during the quarter it had grown its square footage significantly and opened 21 stores.

“DKS is one of the best stories in the beleaguered hardlines space due to strong product assortment and above average square footage growth,” wrote Sterne Agee analyst Sam Poser. “We believe that the company is poised to take market share not only from the fragmented independent competitors but also from The Sports Authority which has been struggling.”

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